Spot gold prices recovered ground on Monday, climbing 0.3% to trade at $4,013.93 per ounce.
The precious metal bounced back from a two-week low as market participants positioned themselves ahead of the release of key US inflation figures later in the week.
The rebound comes after a period of volatility that saw gold dip to its lowest level in two weeks.
Traders are now focused on the upcoming Consumer Price Index (CPI) data, which will provide crucial insight into the trajectory of US inflation and influence expectations for Federal Reserve monetary policy.
A hotter-than-expected print could dampen hopes for near-term rate cuts, potentially weighing on non-yielding assets, while cooler data may reinforce the dovish outlook that has supported gold in recent sessions.
Geopolitical tensions between the US and Iran also continue to underpin demand for safe-haven assets.